Presentation

Presented to : SIR FAROOQ AZAM

Presented by :
AYESHA HABIB(BBC-09-34)
ASHIFA HAMID(BBC-09-61)
ZAINUB MUSTEHSAN(BBC-09-69)
 Company Profile
• Abbot Laboratories (Pakistan) Ltd. The company’s
principal activities are to manufacture, import and
market based pharmaceutical, nutritional,
diagnostic, hospital and consumer products and
provides toll-manufacturing services. It operates in
two segments Pharmaceutical and other.
Pharmaceutical segment manufactures, import
and markets research based pharmaceutical
products registered with the ministry of health and
provides toll-manufacturing services.
 Company Profile
• Other segments includes importing,
manufacturing and marketing diagnosing
equipment, testing kits, consumer healthcare,
nutritional and hospital products. The company’s
pharmaceutical products include Kalaricid,
Erthrocin, Hytrin, Epival, Brufen, Entamizole,
protium and Forane. The other products include
Ensure, Pediasure, Pedialyte, Formance etc.
 Abbott Pakistan
• Abbott has approximately 70,000 employees worldwide
and a global presence in more than 130countries.
Abbott Pakistan started operation in Pakistan as a
marketing affiliate in 1948. The company has steadily
expanded to compromise a work force over 1400
employees. Currently two manufacturing facilities
located at Landhi (largest tablet manufacturing plant)
and Korangi in Karachi continue to use innovative
technology to produce top quality pharmaceuticals
products. The diagnostic division operates from its office
located at Korangi, Karachi.
 Abbott

VISION

“To be a premier health care company in

Pakistan”
 Abbott
MISSION

To deliver consistently superior products and services

which contribute significantly to improve the quality of life of
the consumers? This will be achieved while ensuring that
the interests of all stakeholders including healthcare
providers, employees, share holders and the communities
are secured. Abbott Pakistan will comply with the highest
standards of local cGMP/EHS and adhere to the corporate
code of Business Conduct and Ethics.
 Supply Chain Mission
Abbott’s SCM mission is to configure, coordinate
and improve all the sequentially related activities
and set of operations with the idea of satisfying the
entire chain of ‘suppliers and customers’ by
providing right product, at the right time, in the right
quantity and becoming highly recognized by our
employees, customers and shareholders and
abiding by Government regulations by adhering to
strict ethical and moral standards”.
 Core values of Abbott

ENDURING

PIONEERING ABBOTT CARING

ACHIEVING
 CAPABILITIES OF ABBOTT

QUALITY
AGILITY OF
INTEGRITYY EXECUTION

LEADERSHIP COMUNICATION
Core Competencies Of Abbott

PRODUCTS &
SERVICES

CUSTOMER
INTIMACY

OPERATIONAL
EXCELLENCE

PEOPLE
 Supply chain Integration
CUSTOMER

I
N
F
O
R RETAILERS/
M WHOLESELLERS P
A DISTRIBUTORS R
T O
I WAREHOUSE ( F O) D
O U
N C
Manufacturing T
F
L WAREHOUSE (M O) F
O L
W TRANSPORTATION O
W
SUPPLIER

MARKETING
Abbott’s Supply Chain Structure
SUPPLY CHAIN
MANAGER

CAPAPCITY
PLANNER MASTER MASTER
SCHEDULER SCHEDULER

PRODUCTION PRODUCTION
PLANNER PLANNER

MATERIALS
MANAGER

WAREHOUSE EXPORTS
MANAGER LOCAL/ IMPORTED MANAGER
PURCHASE
MANAGER
Supply Chain Process
Marketing
( Demand Generated)

Manufacturing
Planning

(Demand Generated)

Material Planning

Vendors
(Quotations asked)

LC

Follow up ---import &

dispatches

Clearance Transit Time

Material in Warehouse

Material Available For

Production
 Production

QA

Released by QA

FO Batches

Packing line

FO Quarantine
(Sampling test by QA)

Central Depot’s

Dispatches Satellite Depot’s

& Distribution

Institutions Wholesalers

Retailers
 SCOR Model

PLAN

SOURCE MAKE DELIVER

RETURN MO RETURN FO

Enable
 Plan

Delive Sourc Make Delive Source Make Deliver Sourc Make Delive Sourc
r e r
Return e
Return r
Return e
Return
Return Return
RM
Manufact Distribut
Whole
ABBOTT Lab
urer Indente ors
Pakistan salers
Supplier’s rs
Company Customer
Supplier Supplier Customer’s
Customer
 PLANNING
• According to the external customer.
• Past sales are taken into consideration.
• Ads flexibility
 PROCESS VIEW OF SUPPLY
CHAIN
Push process is applied when forecast of every
product is done and every product forecast is
different from country to country due to the fact
that in different country’s disease are different due
to environment and various other factors. This
requires different medicines. Pull process is
performed when uncertain demand for any
medicine increase for example when Dengue
occurred there was increased demand for
mosquito repellent lotion and injections.
 Achieving Strategic Fit
Abbott achieved strategic fit through lean
production. They control the upstream and
downstream of products, services, finances
and information through aligned goals and
strategies. That collaboratively work to
reduce cost and waste by efficiently and
effectively pulling what is needed.
 BUSINESS PLANNING
The executive management of ABBOTT
Pakistan does the long term strategic
planning. Every 7th day of the month they
conduct a SNO (Sales and Operations)
meeting. It is reviewed in the SNO meeting
to highlight the gaps in performance if there
any, and to make adjustments if required.
BUSINESS PLANNING

DISCUSS

PROPOSED
FORECAST

SNO MEETING

ADS
 Business Planing
Marketing department gives the forecast to
the supply department and then it’s their job
to make available all the resources required
from the purchases till the delivery of end
product to the consumer on the ATP
(Availability to promise) .This is how they
satisfy their external customers.
 APPROVED DEMAND
FORECAST
In ABBOTT Pakistan the demand is forecasted by
the Marketing department. The Marketing
department provides 24 months rolling aggregate
demand forecast, which is known as ADS
(Approved Demand Statement). This statement
shows individual demands for all product lines
demanded by end users to whom we are providing
quality healthcare products.
 ABNORMAL DEMAND PLANNING /
HANDLING UNCERTAINTY
Abnormal demand is a demand, which
comes unexpectedly Like at the time of War,
NATURAL DISASTERS OR ANY
EPIDEMICS According to ABBOTT they
have a policy to maintain six weeks safety
stock to handle the uncertainties and they
have positioned themselves to handle such
abnormal demand like ABBOTT did with
MOSPEL at the time of Dengue Virus.
 APPROVED SUPPLY PLAN
This plan is made on the bases of ADS and
is approved once the supply department has
made the initial supply plan. Then after the
supply plan has been made it is forwarded it
to the MM (Material Management
Department.)
 MASTER PRODUCTION
SCHEDULE
The entire production is based on this plan
weather it is Tablet, syrup, injectables or
syrup manufacturing. This is set up on the
bases of forecasted and some times
abnormal demand as well. Date for all the
batches is set up according to this plan but
when there is a sense of urgency then there
are some changes made.
 CUSTOMER

MARKETING

MAS

MANUGISTICS

MANUFACTURING
 MASTER PRODUCTION
ARRIVAL
This is the inventory, which is going to arrive
in bulk, and it is the job of Master Production
Scheduler to arrange the bulk. This bulk can
either be for export or for the market
demand done through forecast. He also sets
up when to make the required batch on
which date.
 STOCK KEEPING UNITS

ABBOTT Pakistan has 270 SKU”s, out of

which 240 Pharma products and 30 are
Nutritional products.
 SAFETY STOCK

The raw material, which is stored in extra

units in warehouse, is known as safety
stock. ABBOTT maintain a MO and FO
safety Stock of 6 weeks
 MATERIAL MANAGEMENT
PLANNING
ABBOTT Pakistan is using MRP II to effectively and
efficiently handle the Material issues, which is based on the
information’s provided by MPS, It has been adopted by
ABBOTT Pakistan due to the imposition posted by
ABBOTT International, Chicago. This requirement tells us
on the system what is the quantity required according to
the Master Production Schedule. All transactions are made
electronically into BPCS known as Business Planning &
Control System. If there is an additional requirement due to
abnormal demand then there are some changes made in
MRP.
 CAPACITY PLANNING

ABBOTT Pakistan have a CCR system known as Capacity

Consumption Rate which tells us, the consumption rate of the
resources, which are available for the production, and on the bases of
this update a new planning is developed depending on the
consumption rate. A capacity control process is used to measure and
manage the resource requirements and where appropriate, the work
through put and queue levels. Once they got the ADS than they sub
divide that plan into monthly basis and adjust the machines capacity
according to it. The planned capacity utilization at ABBOTT is approx.
95%. And to manage the capacity control process ABBOTT Pakistan
is using a system known as BPCS which stands for Business Process
Control System.
 MAKE OR BUY DECISION
As far as the make or buy decision is concerned,
some of the products are imported. The primary
reason for importing those products is that the
quality of the raw materials is not up to the mark or
they are very expensive. Also, these products cater
to a very small market segment and manufacturing
them here would not be profitable. Therefore ‘C’
categorgry materials (grading as per their value) are
purchased locally like for instance Pseudo used in
cough syrups from Lahore (alpha chemicals).
Some of the products which ABBOTT buy from
Parent company and from there subsidiaries.
• Pediasure
• Hematology Analyzers
The following products are manufactured in
Pakistan.
• Tablets
• Liquids/Syrups/O.R.S
• Injectables, Creams/ Ointments.
 SOURCE

In Pharmaceutical Industry there are two

types in ingredients:
• Active Ingredients
• Excipient Ingredients
ACTIVE INGREDIENTS:
Is an essential intergradient for any specific drug,
without which a drug does not cure a respective
disease?
 EXCIPIENT INGREDIENTS
Is an intergradient which itself is not
workable, it when mixed with some other
intergradient becomes curable for a
respective disease. It is against the Abbott
Pakistan policy to disclose the Excipient
Ingredients however some of the Active
ingredients along with the suppliers and the
country of origin are as follows:
• Dy Red – sencient UK
• Potassium chloride – Merck, Germany
• Sodium Citrate – Sanfu, Taiwan
• Sodium chloride – Dominon salt, New
Zealand
• Acid Citric – Jungvuzlaur, Austria
• Dextrose – Rafhan Industries Faisalabad
• Artificial bubble gum – IFF Holland
 MATERIALS
MANAGEMENT

WAREHOUSE LOCAL/ IMPORTED EXPORTS

PURCHASE
 BID SHEET

A bid sheet is a low cost effective sheet in which there are quotations form
different suppliers and on the bases of that low cost suppliers are selected
comparing their LANDED COST It includes:
• Representative/Agent
• Name of manufacturer and country
• Vendor status
• Quotation date
• Foreign currency
• Duty
• Landed cost/kg
• Local currency
• Exchange rates
• Cost and freight
VENDORS APPROVAL STEPS
Material Sample and vendor also provides

Certificate of Analysis & Form 7.

Quality Assurance test of the material in ABBOTT”s

own laboratory

Quality Control approves the material and assigns a

number to batch and a Yellow Sticker.

Trial Batch is made of a actual material

Stability Testing (QA)

Material Approval (QA)

Quality Assurance issue a Green Sticker (Release)

Batch Manufactured

End Product
 ANALYSIS OF THE
REQUIREMENT

Two general categories for vendors are:

A) Approved and Active
B) Approved and Inactive
This is the bases on which the vendors are selected and it
is conducted by the ABBOTT itself in order to select the
vendor who can provide the material of good quality and at
low cost .The basic purpose of selecting a vendor is to
have quality service provided by them and to check their
EFFECIENCY & RESPONSIVENESS. Quotations from
different vendors are sent through mail and on the bases of
the BID SHEET, final selection of the vendor is made.
There is no indenter involved in local purchases.
 PROCUREMENT
ABBOTT Pakistan has two purchasing departments.
One is for local purchases and the other one is for
imports. The procurement function is bifurcated in
two categories:
• Direct Product Related Purchases
• General Purchases
There is a clause imposed by ABBOTT Int. Chicago
on ABBOTT Pakistan that if the amount of
requisition value is above $ 1000, then at least 3
quotations must be taken.
 GENERAL PURCHASES

General Purchases include routine items

such as stationary, office equipment's,
transportations and other minor items which
are not directly related with production
activities.
DIRECT PRODUCT RELATED
PURCHASES

This includes each and every raw material

that is required to make end products
MATERIAL CLASSIFICATIONS
ABBOTT Pakistan classifies its materials
according to the values or the cost of materials,
basically they have allotted three grades or types
to their materials:
• Grade A (very costly materials)
• Grade B (moderate cost)
• Grade C (least cost)
 Local Purchasing
Local purchasing department of Abbott
Laboratories Pakistan deals with local vendors
concerning:

• Designing –FP Plastics, Al-Ahad Plastics,

Thermoplas (Korangi) > Lead Time 30 Days

• Printing–Ammara Commercial Printing

(Memon Goth, Malir) > Lead Time 30 Days
• Packaging – Saima Packaging (Korangi Industrial
Area) > Lead Time 30 Days

• Slicing Aluminum foils - Muhammad Corporations,

Gulshan -e- Iqbal

• Cartons – Sultan Packages (Dalmiya, Karachi) > Lead

time 7 Days

• Cartons – King Packages (Lalukhait, Karachi) > Lead

Time 7 Days
• Cartons - Decent packages (S.I.T.E Area) >
Lead time 7 Days

• Dextrose – Rafhan Industries (Faisalabad)

• Pseudo - Alpha Chemicals – (Lahore)

• Essential Chemicals – (Lahore)

 IMPORT PURCHASING

ABBOTT Pakistan has indenters through which

they place their orders to the respective
manufacturers of raw materials. Some of the
Indenters of ABBOTT Pakistan are:
• Rasheedsons - KHI
• Munico Associates - KHI
• S. Aijazuddinn - KHI
• Arfeen - KHI
 IMPORTED MATERIALS’
AVERAGE LEAD TIME

• By sea is approximately 75 days

• By air approximately 45 days
Documents Required For Import
• Invoice
• Picking List
• Form 3 and 7 (Imposed by Ministry of Health
which contains Batch Certificate, name of the
manufacturer, raw material to get a Drug Import
License from MOH)
• Bill of Lading / Air Label
• Certificate of Analysis
• Certificate of Origin
 ADVISING BANKS OF ABBOT
PAKISTAN
• Detuche Bank
• Standard Chartered Bank
• ABN AMBRO
• HSBC
Then after this process the LC is send to the
concern suppliers and indenters and then they set
the raw material to be shipped, shipment is done
through different shipping company and this part is
dealt by the imports department.
FEW SHIPPING COMPANIES THROUGH
WHICH ABBOT PAKISTAN IMPORTS RAW
MATERIALS

• P&O NEDLLOYD
• MAERSK SEALAND
• HOPAG LLOYD
WAREHOUSE
FIFO Checking of raw material on
the bases of check list

Received through MRR &

kept in quarantine for QA
approval

Storage of raw/packaging
material after acceptance

Handling of non acceptance Wastage Warehouse

material

Storage of control/locater
system
Storage of control/locater
system

Storage of temperature Cold Storage

sensitive material (Refrigerators 2C- 8C)

Issue of raw material

MO

Hazardous drug labeling

Material requisition return

Manufacturing

End Product

Quality Assurance of Finished

Good

Warehouse FO
 RECEIVING THROUGH MRR

Raw material is received in warehouse

through MRR (Material Receiving
Report).This report ensures that the right
raw material for the required product is
received.
 FOR TESTING QA

The raw material is send to QA (Quality

Assurance) for testing if it approved then it is
ready for issuance to the manufacturing
department also called as MFG. If it’s
rejected then it is send back to the suppliers.
 PRACTICES THAT SET
ABBOTT APART
ABBOTT Pakistan also has a method of
ensuring that such faulty material is not sold
on the black market. For this reason, an
employee of Quality Assurance
accompanies the inferior quality materials to
a disposal site where the materials are put
into an incinerator where the temperature is
as high as 800°C.
EXPORTS Demand of products received
by external customer

Performa raised against the

demand of products by the
exports in charge

Performa forwarded to
Materials planning

Arrangement of raw material

regarding the product

Invoice and bill of lading

prepared

Documents sent to MOH

Ministry of Health

Shipment made before the due time after all

the process has been completed before.
ABBOTT Pakistan fulfils the demand of countries like:
• South Africa
• Sri Lanka
• Thailand
• Bangladesh
• Malaysia
• Indonesia
• Syria
 ABBOTT PAKISTAN TYPES
OF PRODUCTS

TYPES OF PRODUCT:
• Tablets
• Liquids/Syrups/O.R.S
• Injectables
• Creams/Ointments
 MAIN PRODUCTS
• Multivitamins
• Antibiotics
• Anti Inflammatory
• Cough and Cold
• Anaesthetics
• Analgesics
• Anti Arthritic
• Antacid
• Anti B.P.H
• Anti Epileptic
DISTRIBUTION

The distribution at ABBOTT is

all about delivering products to
customers at the right time, right
place and in right quantity so
that there are no shortages.
Distribution can be done
through different methods.
 TYPES OF DISTRIBUTION
• Direct Distribution
• Indirect Distribution

Direct Distribution is done through the manufacturing plant i.e. after

manufacturing, products are distributed via ABBOTT delivery trucks
to the institutions according to contracts and demand by institutions.

Indirect Distribution is all about distributing through appointed

distributors i.e. those distributors who have proper contracts and
than they distribute the respective product to the wholesalers and
different chemists. Here, the concept of Third-party logistics (3PL)
comes into play.
 ABBOTT DISTRIBUTION
ABBOTT has their own depot i.e. their own
distributorship in Karachi, Multan, Lahore and
Islamabad dealing directly to customers
(Distributors and institutions) ABBOTT has market
distributors in big cities and specific areas are
assigned to each distributor (who works on 6%
commission basis) so that they can specifically
take care of their areas and make sure those
proper services and products are delivered to each
and every customer.
 DISTRIBUTORS
• Premier Agency—Muslimabad,
Karachi.
• Babar Medicine, Lahore.
• Nadeem Traders, Peshawar.
• Baloch Enterprise, Multan.
• D.S Pharma, Rawalpindi.
 MODES OF
TRANSPORTATION
ABBOTT has different modes of transport as
per requirement of the product and the
distance to be covered. Some products such
as Atrelax require temperature controlled
environments (2-8 °C) and for this reason
they are delivered to Peshawar through
courier services so that they can be
maintained properly throughout.
They have their own vans with ABBOTT
monogram and they are generally used for
distributing to local customers (distributors
and institutions) within Karachi and nearby
areas. Names of some of the transportation
services hired by ABBOTT are Lahore
naulakkah transport, Bashir Siddique
transport, Fast track cargo services,
Leopard courier services.
 ABBOTT’S DISTRIBUTION CHANNEL
Abbott Pak
Hospital
Abbott truck

Cent. Depot Distributor

Abbott truck

Wholesaler
 DOCUMENTATION AND
INVOICING
There are some legal formalities that need to be fulfilled before
making a contract with distributors.
• Delivery Chalaan
• Customer Invoice
• Merchandise Receiving Report (MRR)
 Product Name
 Quantity
 Delivered by
 Received by
 Condition (sound or spoiled)
 Date of receiving
 RETURNS

Product Returns

MANUFACTURER
 CONDITIONS FOR
RETURNING RAW
MATERIALS
Raw Materials are returned either at the time
when they are being unloaded or after they
have been tested by the QA and found to be
defective.
 RETURN OF MATERIAL
ORDERS (MO’S)
This can occur if the batch size is found to
be wrong i.e. ABBOTT suppliers mistakenly
supplied the wrong quantity of materials or
the materials were of incorrect specifications
or the product is found contaminated. In
either case, the material is not allowed to be
kept in the warehouse and is returned
immediately.
Thank you